10% VAT on land use right transfer proposed

This proposal has attracted a lot of attention / as it will have a profound impact on the real estate market. Meanwhile, experts say that an additional 10% of VAT on land-use-right transfer will make it very hard for people to own new houses.

According to real estate companies, the imposition of VAT on land use right transfer will directly affect land buyers, not land traders. This is believed to go against the efforts to reduce house prices in recent time.